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15 Ways to Improve Lighting Quality In Commercial   Applications 
 
				
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An Introduction to EPAct  
    
      The Energy Policy Act of 2005 establishes a long-range energy   policy to combat the nation’s growing energy crisis. Effective Jan. 1, 2006,   through Dec. 31, 2013, the U.S. government is offering substantial, accelerated   tax incentives as a reward for installing or retrofitting energy-efficient   lighting, HVAC and/or building envelope technologies in qualifying applications. 
        
         
        Lighting, a critical component of energy use today, costs 40%   of the average commercial building’s electric bill. Energy efficient upgrades   reduce energy consumption and operating costs by 30 to 50% and often pay for   themselves within months. 
        
         
        Generally, lighting retrofit investments are amortized over   the life of the system. One of the most significant benefits of EPAct 2005 is   that it allows a larger portion of the capital investment to be depreciated in   the first year.  
	
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  EPAct 2005 Qualifications  
     
  To qualify for the EPAct 2005 tax deductions, a commercial   building property must: 
     
    Be located in the U.S. and fall within the scope of   ASHRAE/IES Standard 90.1-2001; and    Receive an upgrade/installation of: 
      (1) interior lighting   system, or 
      (2) heating/cooling/ventilation/hot water systems, or 
      (3)   building envelope that was put in service between Jan. 1, 2006 and Dec. 31, 2013     
             
       
      Be certified as being an “energy-efficient property,” defined   as one that has 50% of the total annual energy and power costs of a building   satisfying ASHRAE/IES Standard 90.1-2001.  
       
      To receive the tax deduction, the deduction must: 
       
      Not exceed the cost of the upgrade, including materials,   labor and design; and 
       
      Be taken in the taxable year the property or upgrade is   placed in service (2006 - 2013); and 
       
      Be calculated based on the square footage of the upgraded   building. 
      – Up to $1.80/sq. ft. for “energy-efficient property”  
      – Up to   $0.60/sq. ft. each for interior lighting, HVAC/hot water and building envelopes  
       
      To claim the tax deduction*, you must be:
     
    The owner or entity who paid to have the commercial building   constructed or renovated
     
    The party primarily responsible for designing the publicly   owned property 
     
    * Circumstances vary widely. Before pursuing or claiming any   deduction described in this brochure, consult your tax advisor concerning your   specific tax situation and potential changes in the applicable tax laws.  
     
    For additional information: Lighting Tax Deduction 
   	
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